Alujain Corp. — Interim / Quarterly Report 2021

May 2, 2021

Alujain Holding Corp. announces its Interim Financial Results for the Period Ending on 2021-03-31 ( Three Months )

2170 · 02/05/2021 08:17:28 · Announcement #63140 · View on Saudi Exchange

Alujain Holding Corp. announces its Interim Financial Results for the Period Ending on 2021-03-31 ( Three Months )

Element List	Current Quarter	Similar quarter for previous year	%Change	Previous Quarter	% Change
Sales/Revenue	4.76	4.63	2.807	3.87	22.997
Gross Profit (Loss)	0.74	0.62	19.354	0.38	94.736
Operational Profit (Loss)	60.94	-46.04	-	56.3	8.241
Net Profit (Loss) after Zakat and Tax	60.3	-46.37	-	54.75	10.136
Total Comprehensive Income	60.72	-47.77	-	57.71	5.215
All figures are in (Millions) Saudi Arabia, Riyals

Element List	Current Period	Similar period for previous year	%Change
Total Share Holders Equity (after Deducting Minority Equity)	1,751.49	1,430.59	22.431
Profit (Loss) per Share	0.87	-0.67
All figures are in (Millions) Saudi Arabia, Riyals

Element List	Explanation
The reason of the increase (decrease) in the net profit during the current quarter compared to the same quarter of the last year is	The reason for achieving net profit during the current quarter compared to net loss for the same quarter of previous year is mainly due to the subsidiary, National Petrochemical Industries Company (NATPET), achieved net profit during the current quarter compared to net loss during the same quarter of previous year. (Alujain Holding Corp. owns 57.4% of NATPET shares).
The reason of the increase (decrease) in the net profit during the current quarter compared to the previous period of the current year is	The reason for the increase in net profit during the current quarter compared to 4th quarter of 2020 is the increase in the company's share in NATPET net profit by SR4.7 million.
Statement of the type of external auditor's report	Unmodified conclusion
Modification, Qualification or Emphasis of a Matter as Stated within the External Auditor Opinion	Emphasis of Matters

We draw attention to the following:

1. As explained in Note (4) of the accompanying consolidated financial statements, end of 2019, established four companies , Mna Company, Developed Fawasel Chemical Company, Abraj Altaj Plastic Industrial Company and Professional Afaq Company (“the four companies”) without paid their capital as of 2019, and in Jan 1 ,2020 NATPET company signed contract with a combined value of SR 559 million so that the four companies can purchase shares in Alujain Holding Corporation and pay off the loan on December 31, 2025. Through first quarter for their 2020, NATPET company gave up its full shares in these four companies in stages, and the management of NATPET believes that the process of assigning ownership of these four companies is illegal, and legal procedures have begun to restore its ownership and control over these four companies. Accordingly, the financial statements of these four companies were not consolidated within the consolidated financial statements of NATPET company for the year ending on December 31, 2020. In addition, NATPET company obtained a legal opinion that supports its position and confirms its ability to recover the value of the loan by the due date, and our opinion has not been amended based on this matter

2. As explained in Note (4) and Note (30) to the accompanying consolidated financial statements which describes that NATPET invested in Alujain Holding Corporation shares and the fair value of those shares as of December 31, 2019 amounted to about SR 223 million (7.435 million shares). At the beginning of March 2020, NATPET sold all these shares. On March 10, 2020, a court ruling was issued against NATPET and any of its subsidiaries, whether owned directly or indirectly, restricting the rights of shares owned by NATPET Company in the Alujain Holding Corporation until ownership is corrected and moving properly through activating the regular role of the General Assembly of NATPET, according to the Regulations for Companies. Management, after consulting with legal counsel, believes that this ruling includes restricting the rights of these shares transferred by NATPET to others as long as the transfer of shares is in a fictitious and unrealistic manner. Our opinion is not further modified in respect of this matter.

3. As explained in Note (4) to the accompanying consolidated financial statements which describes that a court ruling was issued at the end of 2019 revoking the NATPET General Assembly’s decision regarding dividends amounting SR 107 milllion related to year ended December 31, 2018. The General Assembly of NATPET was held on May 31, 2020, and approved a dividend of SR 107 million for the year ended December 31, 2019. Our opinion is not further modified in respect of this matter.Reclassification of Comparison Items Certain reclassifications were made in comparative numbers to conform to the current period.Additional Information NATPET results (For 1st quarter 2021):

1. NATPET and its subsidiaries companies reported total sales during the current quarter amounted to SR446 million, an increase of 297% compared to the sales of the same quarter of the previous year and an increase of 3% compared to the sales of 4th quarter of 2020.

2. NATPET and its subsidiaries net profit for the current quarter is SR113 million, compared to a net loss of SR62 million for the same quarter of the previous year, and compared to a net profit of SR105 million for 4th quarter of 2020.

3. The main reason for the increase in the net profit of NATPET during the current quarter compared to 4th quarter of 2020 is the increase in product prices and lower costs while continuing to implement programs to raise operating efficiency and reduce fixed costs.

4. The operational performance of NATPET plant and its subsidiaries continued to improve during the current quarter, as production rates close to the plant's maximum capacity were maintained, and more than 90,000 tons of polypropylene and products of its subsidiaries were sold during 1st quarter of 2021.

5. Average prices of polypropylene products increased in 1st quarter of 2021 compared to the previous quarter due to the relative recovery of commodity markets in general, in line with increase in seasonal demand for propylene and causes related to irregularity in global supply chains.

6. It is expected that the quantities sold of NATPET products will increase, and the average prices will improve during 2nd quarter of 2021 compared to average prices and quantities sold in the current quarter, which will positively affect the operating performance of NATPET and Alujain Holding Corp.

7. NATPET earnings per share for the current quarter is SR1.06 per share, compared to a loss of SR0.57 per share for the same quarter of the previous year, and compared to a profit of SR0.98 per share for 4th quarter of 2020.

8. NATPET retained earnings at the end of the current period amounted to SR1,692 million compared to SR1,266 million at the end of the same period of the previous year, an increase of 33.65%.

9. Total shareholders 'equity of NATPET at the end of the current period amounted to SR2,944 million compared to SR2,462 million at the end of the same period of the previous year. Alujain's share (57.4%) of shareholders' equity of NATPET at the end of the current period is SR1,690 million compared to SR1,413 million at the end of the same period of the year the previous.

10. During 1st quarter of 2021, NATPET underwent a detailed re-evaluation of the company's management, quality systems and obtained accreditation for its group of integrated management systems from the American National Accreditation Board, and these systems include:

- Health and Safety Management System ISO 45001: 2018

- Responsible Care Management System RC14001: 2015

- Quality Management System ISO 9001: 2015

- Environmental Management System ISO 14001: 2015

- The company is currently working on adding ISO 50001 Energy Management Quality System accreditation to its quality and sustainability management systems.

Alujain Holding Corp. is currently exploring several options, including projects for acquisition, merger, and expansion, and any developments or any material development in this regard will be announced in a timely manner.

The Capital Market Authority and Saudi Exchange take no responsibility for the contents of this disclosure, make no representations as to its accuracy or completeness, and expressly disclaim any liability whatsoever for any loss arising from, or incurred in reliance upon, any part of this disclosure, and the issuer accepts full responsibility for the accuracy of the information contained in it and confirms, having made all reasonable enquiries, that to the best of their knowledge and belief, there are no other facts or information the omission of which would make the disclosure misleading, incomplete or inaccurate.